Formula Systems (1985) (Formula Systems (1985)) Effective Interest Rate on Debt %

: 3.60% (As of Sep. 2023)

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Effective Interest Rate on Debt % is the usage rate that a borrower actually pays on a debt. It is calculated as the positive value of Interest Expense divided by its average total debt. Total debt equals to Long-Term Debt & Capital Lease Obligation plus Short-Term Debt & Capital Lease Obligation. Formula Systems (1985)'s annualized positive value of Interest Expense for the quarter that ended in Sep. 2023 was $26 Mil. Formula Systems (1985)'s average total debt for the quarter that ended in Sep. 2023 was $713 Mil. Therefore, Formula Systems (1985)'s annualized Effective Interest Rate on Debt % for the quarter that ended in Sep. 2023 was 3.60%.

Formula Systems (1985) Effective Interest Rate on Debt % Historical Data

The historical data trend for Formula Systems (1985)'s Effective Interest Rate on Debt % can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

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Formula Systems (1985) Annual Data

Trend

Dec13

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Effective Interest Rate on Debt %

3.41

3.29

2.95

2.62

2.48

Formula Systems (1985) Quarterly Data
	Dec18	Mar19	Jun19	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23
Effective Interest Rate on Debt %																2.57	2.80	3.73	3.04	3.60

Competitive Comparison

For the Information Technology Services subindustry, Formula Systems (1985)'s Effective Interest Rate on Debt %, along with its competitors' market caps and Effective Interest Rate on Debt % data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.

Formula Systems (1985) Effective Interest Rate on Debt % Distribution

For the Software industry and Technology sector, Formula Systems (1985)'s Effective Interest Rate on Debt % distribution charts can be found below:

* The bar in red indicates where Formula Systems (1985)'s Effective Interest Rate on Debt % falls into.

Formula Systems (1985) Effective Interest Rate on Debt % Calculation

Formula Systems (1985)'s annualized Effective Interest Rate on Debt % for the fiscal year that ended in Dec. 2022 is calculated as

	Effective Interest Rate on Debt %
=	-1 * Interest Expense	/	( (Total Debt (A: Dec. 2021 )	+	Total Debt (A: Dec. 2022 ))	/ count )
=	-1 * -18.434	/	( (712.909	+	772.144)	/ 2 )
=	-1 * -18.434	/	742.5265
=	2.48 %

where

	Total Debt (A: Dec. 2021 )
=	Long-Term Debt & Capital Lease Obligation	+	Short-Term Debt & Capital Lease Obligation
=	447.103	+	265.806
=	712.909

	Total Debt (A: Dec. 2022 )
=	Long-Term Debt & Capital Lease Obligation	+	Short-Term Debt & Capital Lease Obligation
=	500.472	+	271.672
=	772.144

Formula Systems (1985)'s annualized Effective Interest Rate on Debt % for the quarter that ended in Sep. 2023 is calculated as

	Effective Interest Rate on Debt %
=	-1 * Interest Expense	/	( (Total Debt (Q: Jun. 2023 )	+	Total Debt (Q: Sep. 2023 ))	/ count )
=	-1 * -25.692	/	( (731.196	+	694.457)	/ 2 )
=	-1 * -25.692	/	712.8265
=	3.60 %

where

	Total Debt (Q: Jun. 2023 )
=	Long-Term Debt & Capital Lease Obligation	+	Short-Term Debt & Capital Lease Obligation
=	463.308	+	267.888
=	731.196

	Total Debt (Q: Sep. 2023 )
=	Long-Term Debt & Capital Lease Obligation	+	Short-Term Debt & Capital Lease Obligation
=	418.291	+	276.166
=	694.457

In the calculation of annual Effective Interest Rate on Debt %, the Interest Expense of the last fiscal year and the average total debt over the fiscal year are used. In calculating the quarterly data, the Interest Expense data used here is four times the quarterly (Sep. 2023) interest expense data. Effective Interest Rate on Debt % is displayed in the 30-year financial page.

Formula Systems (1985) (NAS:FORTY) Effective Interest Rate on Debt % Explanation

Effective Interest Rate on Debt % measures the usage rate that a borrower actually pays on a debt.

Formula Systems (1985) Effective Interest Rate on Debt % Related Terms

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Formula Systems (1985) (Formula Systems (1985)) Business Description

Industry

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Comparable Companies

Traded in Other Exchanges

FORTY:Israel FSY:Germany FSY:Germany

Address

Yahadut Canada 1 Street, Or Yehuda, Tel Aviv, ISR, 6037501

Website

https://www.formulasystems.com

Formula Systems (1985) Ltd is a holding company that, through its subsidiaries, provides information technology services. The company organizes itself into three primary segments based on the subsidiary. The Matrix segment, which generates the majority of revenue, provides software development and existing software expansion services. The Sapiens segment provides software development services for the insurance industry. The Magic Software segment provides vendor management systems and workforce management services, which include accounting and finance, human resources, IT technology, and marketing and sales. Michpal; ZAP Group and Others. The majority of the company's revenue comes from Israel.